Divorce stock options ontario

Posted: Chernoww Date: 20.06.2017

There has been much contention regarding how bonuses, shares, and stock options should be dealt with for the purposes of equalization and support. Justice McLaren tackled this issue in the case Patterson v. Patterson CarswellOnt Patterson the parties married in and separated in September The father was vice president of a large bank and had been receiving a bonus for 15 years.

The husband also received shares from his employment. The bank placed shares in trust and one third vested each year so that, in three years, all shares vested. The husband received stock options every year since to allow him to buy bank common shares. Shares vested at a rate of 25 percent each year and options expired after ten years. Justice McLaren held that a bonus is to be included in ones income in the year that it is available.

Justice McLaren considered several factors when making his decision. In this matter the father could ask for shares once they vested and hang on to them, or sell them, or he could defer taking them for three years. When shares vested and the father accepted them, they were considered income. Stock options were to be included in the income when they vested and were available to the father. Stock options that are a regular component cannot be considered as non-recurring or just property.

Justice McLaren reasoned that if options were only available for child support once exercised, there would be vast amounts of income in high salary earners that were unavailable for child support once various terminations for child support arose.

Justice McLaren recognized that to impute income for restricted share awards, bonuses or stock options would require assistance from financial experts on an annual basis, however, he felt that this should be affordable and worthwhile given the amount of money involved. The case of Bak v.

How bonuses, shares, and stock options effect equalization & support in Province of Ontario.

Dobell, CarswellOnt Ont. This case was heard in the Superior Court of Justice of Ontario by Justice Metivier. The parties were married for 13 years and separated in There were two children of the marriage. The parties entered into a separation agreement….

The recent case of Bekkers v. Bekkers of the Ontario Superior Court of Justice provides an interesting analysis of imputing income to a payor who is the majority shareholder and sole employee of their own small business. Family Law cases rarely make their way to the Supreme Court, but the matter of L.

The issue in this case was defining and dealing with…. Your email address will not be published. Currently you have JavaScript disabled.

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divorce stock options ontario

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divorce stock options ontario

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Giansante v Dichiara Patterson v. Imputing Income Based on Gifts Received by the Payor The case of Bak v. Lecour This case was heard in the Superior Court of Justice of Ontario by Justice Metivier. Bekkers — Imputing Income to Self-Employed Spouses The recent case of Bekkers v.

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Restricted Stock Units And Divorce

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